Following an uprising the Communists appear to have taken control
of Madioen [1], one of the big cities in East Java and a main
centre of Republican transport workshops. Sukarno, who appears
seriously distressed, fears the Communists may gain control of the
large airfield in the vicinity of the city which is poorly
protected and could be used for the supply of arms. Hatta who is
more sanguine is studying reports with a view to counter measures.

2. The Committee of Good Offices was informed today that a number
of families of Republicans have been given notice to leave
Netherlands-controlled territory within two weeks on the ground
that they are connected with or suspected of 'inadmissible
activities'. The Committee agrees that the threat of such action,
following upon the succession of incidents and measures which have
already been referred to the Committee will seriously prejudice
success of any negotiations and indeed may make the resumption of
negotiations impossible. The Committee has telegraphed the
Netherlands Delegation expressing this view and the hope that the
Netherlands Indies Government will withdraw the notices in the
cases of those families whose actual participation in
'inadmissible activities' is not established by convincing and
publishable evidence.

3. The Republican cabinet will consider the new American proposals
[2] this evening. Both Sukarno and Hatta hope that their
acceptance as a basis of negotiation will be possible within the
next two days. If this acceptance is given the Americans agree
that it will be necessary to exert the strongest pressure on the
Dutch not only to induce their acceptance but also to ensure the
reversal of recent provocative policies against Republicans in
Batavia so that negotiations can be resumed in an atmosphere
conducive to a settlement.